NICOSIA - House President Yiannakis Omirou has announced that the plenary of the House will discuss the bailout bill from Tuesday at 6pm.
He also announced that there would be changes to the bill which would be discussed by the Finance Committee at a time to be determined.
It is considred certain that the banks will remain closed tomorrow and in additoin until the House debate is concluded.
One scenario that has been considered is to reduce the "haircut" for deposits up to 100,000 euros from 6.75% to 3% and taxation on deposits over €100,000 at 10%. For deposits of more than 500,000 euros, a "haircut" of 12.5% could be imposed.
A source told Reuters the introduction of a tax-free threshold for smaller bank deposits - maybe up to 20,000 euros - was under discussion but not yet agreed.
The House President Yiannakis Omirou said debate on the bank levy would be delayed until 4pm on Tuesday, suggesting banks, shut on Monday for the bank holiday, will remain closed on Tuesday.
The euro zone has indicated that changes would be acceptable as long as the return of around six billion euros is maintained. If the Cypriot parliament votes the deal down, the euro zone would face a risk of being dragged back into crisis.
"It is up to the government alone to decide if it wants to change the structure of the ... contribution (from) the banking sector," European Central Bank policymaker Joerg Asmussen, who was pivotal in the weekend negotiations, told reporters on the sidelines of a Berlin conference.
"The important thing is that the financial contribution of 5.8 billion euros remains," he said.
The euro fell before tempering losses. European stocks did similarly, dropping two percent before more than halving losses.
In the bond market - often the most reliable guide to euro zone stress - safe haven German Bund futures shot up while Italian equivalents dived, suggesting some concern that Cyprus could infect its larger neighbours.
"The most important question is what would happen the following day if the bill isn't voted," Cyprus central bank governor Panicos Demetriades told parliament.
"What would certainly happen is that our two big banks would need to be consolidated. This doesn't mean that they would be completely destroyed. We will aim for this to happen in a completely orderly way."
Brussels has emphasised that the measure is a one-off for a country that accounts for just 0.2 percent of European output. The worst fear is that savers in other, larger European countries become nervous and start withdrawing funds, although there was no immediate sign of that on Monday.
U.S. economist Paul Krugman wrote in The New York Times: "It's as if the Europeans are holding up a neon sign, written in Greek and Italian, saying 'Time to stage a run on your banks!'"